SB3387 EnrolledLRB100 19071 SMS 34327 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Horse Racing Act of 1975 is amended
5by changing Section 26 as follows:
 
6    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
7    Sec. 26. Wagering.
8    (a) Any licensee may conduct and supervise the pari-mutuel
9system of wagering, as defined in Section 3.12 of this Act, on
10horse races conducted by an Illinois organization licensee or
11conducted at a racetrack located in another state or country
12and televised in Illinois in accordance with subsection (g) of
13Section 26 of this Act. Subject to the prior consent of the
14Board, licensees may supplement any pari-mutuel pool in order
15to guarantee a minimum distribution. Such pari-mutuel method of
16wagering shall not, under any circumstances if conducted under
17the provisions of this Act, be held or construed to be
18unlawful, other statutes of this State to the contrary
19notwithstanding. Subject to rules for advance wagering
20promulgated by the Board, any licensee may accept wagers in
21advance of the day of the race wagered upon occurs.
22    (b) No other method of betting, pool making, wagering or
23gambling shall be used or permitted by the licensee. Each

 

 

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1licensee may retain, subject to the payment of all applicable
2taxes and purses, an amount not to exceed 17% of all money
3wagered under subsection (a) of this Section, except as may
4otherwise be permitted under this Act.
5    (b-5) An individual may place a wager under the pari-mutuel
6system from any licensed location authorized under this Act
7provided that wager is electronically recorded in the manner
8described in Section 3.12 of this Act. Any wager made
9electronically by an individual while physically on the
10premises of a licensee shall be deemed to have been made at the
11premises of that licensee.
12    (c) Until January 1, 2000, the sum held by any licensee for
13payment of outstanding pari-mutuel tickets, if unclaimed prior
14to December 31 of the next year, shall be retained by the
15licensee for payment of such tickets until that date. Within 10
16days thereafter, the balance of such sum remaining unclaimed,
17less any uncashed supplements contributed by such licensee for
18the purpose of guaranteeing minimum distributions of any
19pari-mutuel pool, shall be paid to the Illinois Veterans'
20Rehabilitation Fund of the State treasury, except as provided
21in subsection (g) of Section 27 of this Act.
22    (c-5) Beginning January 1, 2000, the sum held by any
23licensee for payment of outstanding pari-mutuel tickets, if
24unclaimed prior to December 31 of the next year, shall be
25retained by the licensee for payment of such tickets until that
26date. Within 10 days thereafter, the balance of such sum

 

 

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1remaining unclaimed, less any uncashed supplements contributed
2by such licensee for the purpose of guaranteeing minimum
3distributions of any pari-mutuel pool, shall be evenly
4distributed to the purse account of the organization licensee
5and the organization licensee.
6    (d) A pari-mutuel ticket shall be honored until December 31
7of the next calendar year, and the licensee shall pay the same
8and may charge the amount thereof against unpaid money
9similarly accumulated on account of pari-mutuel tickets not
10presented for payment.
11    (e) No licensee shall knowingly permit any minor, other
12than an employee of such licensee or an owner, trainer, jockey,
13driver, or employee thereof, to be admitted during a racing
14program unless accompanied by a parent or guardian, or any
15minor to be a patron of the pari-mutuel system of wagering
16conducted or supervised by it. The admission of any
17unaccompanied minor, other than an employee of the licensee or
18an owner, trainer, jockey, driver, or employee thereof at a
19race track is a Class C misdemeanor.
20    (f) Notwithstanding the other provisions of this Act, an
21organization licensee may contract with an entity in another
22state or country to permit any legal wagering entity in another
23state or country to accept wagers solely within such other
24state or country on races conducted by the organization
25licensee in this State. Beginning January 1, 2000, these wagers
26shall not be subject to State taxation. Until January 1, 2000,

 

 

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1when the out-of-State entity conducts a pari-mutuel pool
2separate from the organization licensee, a privilege tax equal
3to 7 1/2% of all monies received by the organization licensee
4from entities in other states or countries pursuant to such
5contracts is imposed on the organization licensee, and such
6privilege tax shall be remitted to the Department of Revenue
7within 48 hours of receipt of the moneys from the simulcast.
8When the out-of-State entity conducts a combined pari-mutuel
9pool with the organization licensee, the tax shall be 10% of
10all monies received by the organization licensee with 25% of
11the receipts from this 10% tax to be distributed to the county
12in which the race was conducted.
13    An organization licensee may permit one or more of its
14races to be utilized for pari-mutuel wagering at one or more
15locations in other states and may transmit audio and visual
16signals of races the organization licensee conducts to one or
17more locations outside the State or country and may also permit
18pari-mutuel pools in other states or countries to be combined
19with its gross or net wagering pools or with wagering pools
20established by other states.
21    (g) A host track may accept interstate simulcast wagers on
22horse races conducted in other states or countries and shall
23control the number of signals and types of breeds of racing in
24its simulcast program, subject to the disapproval of the Board.
25The Board may prohibit a simulcast program only if it finds
26that the simulcast program is clearly adverse to the integrity

 

 

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1of racing. The host track simulcast program shall include the
2signal of live racing of all organization licensees. All
3non-host licensees and advance deposit wagering licensees
4shall carry the signal of and accept wagers on live racing of
5all organization licensees. Advance deposit wagering licensees
6shall not be permitted to accept out-of-state wagers on any
7Illinois signal provided pursuant to this Section without the
8approval and consent of the organization licensee providing the
9signal. For one year after August 15, 2014 (the effective date
10of Public Act 98-968), non-host licensees may carry the host
11track simulcast program and shall accept wagers on all races
12included as part of the simulcast program of horse races
13conducted at race tracks located within North America upon
14which wagering is permitted. For a period of one year after
15August 15, 2014 (the effective date of Public Act 98-968), on
16horse races conducted at race tracks located outside of North
17America, non-host licensees may accept wagers on all races
18included as part of the simulcast program upon which wagering
19is permitted. Beginning August 15, 2015 (one year after the
20effective date of Public Act 98-968), non-host licensees may
21carry the host track simulcast program and shall accept wagers
22on all races included as part of the simulcast program upon
23which wagering is permitted. All organization licensees shall
24provide their live signal to all advance deposit wagering
25licensees for a simulcast commission fee not to exceed 6% of
26the advance deposit wagering licensee's Illinois handle on the

 

 

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1organization licensee's signal without prior approval by the
2Board. The Board may adopt rules under which it may permit
3simulcast commission fees in excess of 6%. The Board shall
4adopt rules limiting the interstate commission fees charged to
5an advance deposit wagering licensee. The Board shall adopt
6rules regarding advance deposit wagering on interstate
7simulcast races that shall reflect, among other things, the
8General Assembly's desire to maximize revenues to the State,
9horsemen purses, and organizational licensees. However,
10organization licensees providing live signals pursuant to the
11requirements of this subsection (g) may petition the Board to
12withhold their live signals from an advance deposit wagering
13licensee if the organization licensee discovers and the Board
14finds reputable or credible information that the advance
15deposit wagering licensee is under investigation by another
16state or federal governmental agency, the advance deposit
17wagering licensee's license has been suspended in another
18state, or the advance deposit wagering licensee's license is in
19revocation proceedings in another state. The organization
20licensee's provision of their live signal to an advance deposit
21wagering licensee under this subsection (g) pertains to wagers
22placed from within Illinois. Advance deposit wagering
23licensees may place advance deposit wagering terminals at
24wagering facilities as a convenience to customers. The advance
25deposit wagering licensee shall not charge or collect any fee
26from purses for the placement of the advance deposit wagering

 

 

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1terminals. The costs and expenses of the host track and
2non-host licensees associated with interstate simulcast
3wagering, other than the interstate commission fee, shall be
4borne by the host track and all non-host licensees incurring
5these costs. The interstate commission fee shall not exceed 5%
6of Illinois handle on the interstate simulcast race or races
7without prior approval of the Board. The Board shall promulgate
8rules under which it may permit interstate commission fees in
9excess of 5%. The interstate commission fee and other fees
10charged by the sending racetrack, including, but not limited
11to, satellite decoder fees, shall be uniformly applied to the
12host track and all non-host licensees.
13    Notwithstanding any other provision of this Act, through
14December 31, 2018, an organization licensee, with the consent
15of the horsemen association representing the largest number of
16owners, trainers, jockeys, or standardbred drivers who race
17horses at that organization licensee's racing meeting, may
18maintain a system whereby advance deposit wagering may take
19place or an organization licensee, with the consent of the
20horsemen association representing the largest number of
21owners, trainers, jockeys, or standardbred drivers who race
22horses at that organization licensee's racing meeting, may
23contract with another person to carry out a system of advance
24deposit wagering. Such consent may not be unreasonably
25withheld. Only with respect to an appeal to the Board that
26consent for an organization licensee that maintains its own

 

 

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1advance deposit wagering system is being unreasonably
2withheld, the Board shall issue a final order within 30 days
3after initiation of the appeal, and the organization licensee's
4advance deposit wagering system may remain operational during
5that 30-day period. The actions of any organization licensee
6who conducts advance deposit wagering or any person who has a
7contract with an organization licensee to conduct advance
8deposit wagering who conducts advance deposit wagering on or
9after January 1, 2013 and prior to June 7, 2013 (the effective
10date of Public Act 98-18) taken in reliance on the changes made
11to this subsection (g) by Public Act 98-18 are hereby
12validated, provided payment of all applicable pari-mutuel
13taxes are remitted to the Board. All advance deposit wagers
14placed from within Illinois must be placed through a
15Board-approved advance deposit wagering licensee; no other
16entity may accept an advance deposit wager from a person within
17Illinois. All advance deposit wagering is subject to any rules
18adopted by the Board. The Board may adopt rules necessary to
19regulate advance deposit wagering through the use of emergency
20rulemaking in accordance with Section 5-45 of the Illinois
21Administrative Procedure Act. The General Assembly finds that
22the adoption of rules to regulate advance deposit wagering is
23deemed an emergency and necessary for the public interest,
24safety, and welfare. An advance deposit wagering licensee may
25retain all moneys as agreed to by contract with an organization
26licensee. Any moneys retained by the organization licensee from

 

 

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1advance deposit wagering, not including moneys retained by the
2advance deposit wagering licensee, shall be paid 50% to the
3organization licensee's purse account and 50% to the
4organization licensee. With the exception of any organization
5licensee that is owned by a publicly traded company that is
6incorporated in a state other than Illinois and advance deposit
7wagering licensees under contract with such organization
8licensees, organization licensees that maintain advance
9deposit wagering systems and advance deposit wagering
10licensees that contract with organization licensees shall
11provide sufficiently detailed monthly accountings to the
12horsemen association representing the largest number of
13owners, trainers, jockeys, or standardbred drivers who race
14horses at that organization licensee's racing meeting so that
15the horsemen association, as an interested party, can confirm
16the accuracy of the amounts paid to the purse account at the
17horsemen association's affiliated organization licensee from
18advance deposit wagering. If more than one breed races at the
19same race track facility, then the 50% of the moneys to be paid
20to an organization licensee's purse account shall be allocated
21among all organization licensees' purse accounts operating at
22that race track facility proportionately based on the actual
23number of host days that the Board grants to that breed at that
24race track facility in the current calendar year. To the extent
25any fees from advance deposit wagering conducted in Illinois
26for wagers in Illinois or other states have been placed in

 

 

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1escrow or otherwise withheld from wagers pending a
2determination of the legality of advance deposit wagering, no
3action shall be brought to declare such wagers or the
4disbursement of any fees previously escrowed illegal.
5        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
6    inter-track wagering licensee other than the host track may
7    supplement the host track simulcast program with
8    additional simulcast races or race programs, provided that
9    between January 1 and the third Friday in February of any
10    year, inclusive, if no live thoroughbred racing is
11    occurring in Illinois during this period, only
12    thoroughbred races may be used for supplemental interstate
13    simulcast purposes. The Board shall withhold approval for a
14    supplemental interstate simulcast only if it finds that the
15    simulcast is clearly adverse to the integrity of racing. A
16    supplemental interstate simulcast may be transmitted from
17    an inter-track wagering licensee to its affiliated
18    non-host licensees. The interstate commission fee for a
19    supplemental interstate simulcast shall be paid by the
20    non-host licensee and its affiliated non-host licensees
21    receiving the simulcast.
22        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
23    inter-track wagering licensee other than the host track may
24    receive supplemental interstate simulcasts only with the
25    consent of the host track, except when the Board finds that
26    the simulcast is clearly adverse to the integrity of

 

 

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1    racing. Consent granted under this paragraph (2) to any
2    inter-track wagering licensee shall be deemed consent to
3    all non-host licensees. The interstate commission fee for
4    the supplemental interstate simulcast shall be paid by all
5    participating non-host licensees.
6        (3) Each licensee conducting interstate simulcast
7    wagering may retain, subject to the payment of all
8    applicable taxes and the purses, an amount not to exceed
9    17% of all money wagered. If any licensee conducts the
10    pari-mutuel system wagering on races conducted at
11    racetracks in another state or country, each such race or
12    race program shall be considered a separate racing day for
13    the purpose of determining the daily handle and computing
14    the privilege tax of that daily handle as provided in
15    subsection (a) of Section 27. Until January 1, 2000, from
16    the sums permitted to be retained pursuant to this
17    subsection, each inter-track wagering location licensee
18    shall pay 1% of the pari-mutuel handle wagered on simulcast
19    wagering to the Horse Racing Tax Allocation Fund, subject
20    to the provisions of subparagraph (B) of paragraph (11) of
21    subsection (h) of Section 26 of this Act.
22        (4) A licensee who receives an interstate simulcast may
23    combine its gross or net pools with pools at the sending
24    racetracks pursuant to rules established by the Board. All
25    licensees combining their gross pools at a sending
26    racetrack shall adopt the take-out percentages of the

 

 

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1    sending racetrack. A licensee may also establish a separate
2    pool and takeout structure for wagering purposes on races
3    conducted at race tracks outside of the State of Illinois.
4    The licensee may permit pari-mutuel wagers placed in other
5    states or countries to be combined with its gross or net
6    wagering pools or other wagering pools.
7        (5) After the payment of the interstate commission fee
8    (except for the interstate commission fee on a supplemental
9    interstate simulcast, which shall be paid by the host track
10    and by each non-host licensee through the host-track) and
11    all applicable State and local taxes, except as provided in
12    subsection (g) of Section 27 of this Act, the remainder of
13    moneys retained from simulcast wagering pursuant to this
14    subsection (g), and Section 26.2 shall be divided as
15    follows:
16            (A) For interstate simulcast wagers made at a host
17        track, 50% to the host track and 50% to purses at the
18        host track.
19            (B) For wagers placed on interstate simulcast
20        races, supplemental simulcasts as defined in
21        subparagraphs (1) and (2), and separately pooled races
22        conducted outside of the State of Illinois made at a
23        non-host licensee, 25% to the host track, 25% to the
24        non-host licensee, and 50% to the purses at the host
25        track.
26        (6) Notwithstanding any provision in this Act to the

 

 

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1    contrary, non-host licensees who derive their licenses
2    from a track located in a county with a population in
3    excess of 230,000 and that borders the Mississippi River
4    may receive supplemental interstate simulcast races at all
5    times subject to Board approval, which shall be withheld
6    only upon a finding that a supplemental interstate
7    simulcast is clearly adverse to the integrity of racing.
8        (7) Effective January 1, 2017, notwithstanding
9    Notwithstanding any provision of this Act to the contrary,
10    after payment of all applicable State and local taxes and
11    interstate commission fees, non-host licensees who derive
12    their licenses from a track located in a county with a
13    population in excess of 230,000 and that borders the
14    Mississippi River shall retain 50% of the retention from
15    interstate simulcast wagers and shall pay 50% to purses at
16    the track from which the non-host licensee derives its
17    license. as follows:
18            (A) Between January 1 and the third Friday in
19        February, inclusive, if no live thoroughbred racing is
20        occurring in Illinois during this period, when the
21        interstate simulcast is a standardbred race, the purse
22        share to its standardbred purse account;
23            (B) Between January 1 and the third Friday in
24        February, inclusive, if no live thoroughbred racing is
25        occurring in Illinois during this period, and the
26        interstate simulcast is a thoroughbred race, the purse

 

 

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1        share to its interstate simulcast purse pool to be
2        distributed under paragraph (10) of this subsection
3        (g);
4            (C) Between January 1 and the third Friday in
5        February, inclusive, if live thoroughbred racing is
6        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
7        the purse share from wagers made during this time
8        period to its thoroughbred purse account and between
9        6:30 p.m. and 6:30 a.m. the purse share from wagers
10        made during this time period to its standardbred purse
11        accounts;
12            (D) Between the third Saturday in February and
13        December 31, when the interstate simulcast occurs
14        between the hours of 6:30 a.m. and 6:30 p.m., the purse
15        share to its thoroughbred purse account;
16            (E) Between the third Saturday in February and
17        December 31, when the interstate simulcast occurs
18        between the hours of 6:30 p.m. and 6:30 a.m., the purse
19        share to its standardbred purse account.
20        (7.1) Notwithstanding any other provision of this Act
21    to the contrary, if no standardbred racing is conducted at
22    a racetrack located in Madison County during any calendar
23    year beginning on or after January 1, 2002, all moneys
24    derived by that racetrack from simulcast wagering and
25    inter-track wagering that (1) are to be used for purses and
26    (2) are generated between the hours of 6:30 p.m. and 6:30

 

 

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1    a.m. during that calendar year shall be paid as follows:
2            (A) If the licensee that conducts horse racing at
3        that racetrack requests from the Board at least as many
4        racing dates as were conducted in calendar year 2000,
5        80% shall be paid to its thoroughbred purse account;
6        and
7            (B) Twenty percent shall be deposited into the
8        Illinois Colt Stakes Purse Distribution Fund and shall
9        be paid to purses for standardbred races for Illinois
10        conceived and foaled horses conducted at any county
11        fairgrounds. The moneys deposited into the Fund
12        pursuant to this subparagraph (B) shall be deposited
13        within 2 weeks after the day they were generated, shall
14        be in addition to and not in lieu of any other moneys
15        paid to standardbred purses under this Act, and shall
16        not be commingled with other moneys paid into that
17        Fund. The moneys deposited pursuant to this
18        subparagraph (B) shall be allocated as provided by the
19        Department of Agriculture, with the advice and
20        assistance of the Illinois Standardbred Breeders Fund
21        Advisory Board.
22        (7.2) Notwithstanding any other provision of this Act
23    to the contrary, if no thoroughbred racing is conducted at
24    a racetrack located in Madison County during any calendar
25    year beginning on or after January 1, 2002, all moneys
26    derived by that racetrack from simulcast wagering and

 

 

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1    inter-track wagering that (1) are to be used for purses and
2    (2) are generated between the hours of 6:30 a.m. and 6:30
3    p.m. during that calendar year shall be deposited as
4    follows:
5            (A) If the licensee that conducts horse racing at
6        that racetrack requests from the Board at least as many
7        racing dates as were conducted in calendar year 2000,
8        80% shall be deposited into its standardbred purse
9        account; and
10            (B) Twenty percent shall be deposited into the
11        Illinois Colt Stakes Purse Distribution Fund. Moneys
12        deposited into the Illinois Colt Stakes Purse
13        Distribution Fund pursuant to this subparagraph (B)
14        shall be paid to Illinois conceived and foaled
15        thoroughbred breeders' programs and to thoroughbred
16        purses for races conducted at any county fairgrounds
17        for Illinois conceived and foaled horses at the
18        discretion of the Department of Agriculture, with the
19        advice and assistance of the Illinois Thoroughbred
20        Breeders Fund Advisory Board. The moneys deposited
21        into the Illinois Colt Stakes Purse Distribution Fund
22        pursuant to this subparagraph (B) shall be deposited
23        within 2 weeks after the day they were generated, shall
24        be in addition to and not in lieu of any other moneys
25        paid to thoroughbred purses under this Act, and shall
26        not be commingled with other moneys deposited into that

 

 

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1        Fund.
2        (7.3) (Blank). If no live standardbred racing is
3    conducted at a racetrack located in Madison County in
4    calendar year 2000 or 2001, an organization licensee who is
5    licensed to conduct horse racing at that racetrack shall,
6    before January 1, 2002, pay all moneys derived from
7    simulcast wagering and inter-track wagering in calendar
8    years 2000 and 2001 and paid into the licensee's
9    standardbred purse account as follows:
10            (A) Eighty percent to that licensee's thoroughbred
11        purse account to be used for thoroughbred purses; and
12            (B) Twenty percent to the Illinois Colt Stakes
13        Purse Distribution Fund.
14        Failure to make the payment to the Illinois Colt Stakes
15    Purse Distribution Fund before January 1, 2002 shall result
16    in the immediate revocation of the licensee's organization
17    license, inter-track wagering license, and inter-track
18    wagering location license.
19        Moneys paid into the Illinois Colt Stakes Purse
20    Distribution Fund pursuant to this paragraph (7.3) shall be
21    paid to purses for standardbred races for Illinois
22    conceived and foaled horses conducted at any county
23    fairgrounds. Moneys paid into the Illinois Colt Stakes
24    Purse Distribution Fund pursuant to this paragraph (7.3)
25    shall be used as determined by the Department of
26    Agriculture, with the advice and assistance of the Illinois

 

 

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1    Standardbred Breeders Fund Advisory Board, shall be in
2    addition to and not in lieu of any other moneys paid to
3    standardbred purses under this Act, and shall not be
4    commingled with any other moneys paid into that Fund.
5        (7.4) (Blank). If live standardbred racing is
6    conducted at a racetrack located in Madison County at any
7    time in calendar year 2001 before the payment required
8    under paragraph (7.3) has been made, the organization
9    licensee who is licensed to conduct racing at that
10    racetrack shall pay all moneys derived by that racetrack
11    from simulcast wagering and inter-track wagering during
12    calendar years 2000 and 2001 that (1) are to be used for
13    purses and (2) are generated between the hours of 6:30 p.m.
14    and 6:30 a.m. during 2000 or 2001 to the standardbred purse
15    account at that racetrack to be used for standardbred
16    purses.
17        (8) Notwithstanding any provision in this Act to the
18    contrary, an organization licensee from a track located in
19    a county with a population in excess of 230,000 and that
20    borders the Mississippi River and its affiliated non-host
21    licensees shall not be entitled to share in any retention
22    generated on racing, inter-track wagering, or simulcast
23    wagering at any other Illinois wagering facility.
24        (8.1) Notwithstanding any provisions in this Act to the
25    contrary, if 2 organization licensees are conducting
26    standardbred race meetings concurrently between the hours

 

 

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1    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
2    State and local taxes and interstate commission fees, the
3    remainder of the amount retained from simulcast wagering
4    otherwise attributable to the host track and to host track
5    purses shall be split daily between the 2 organization
6    licensees and the purses at the tracks of the 2
7    organization licensees, respectively, based on each
8    organization licensee's share of the total live handle for
9    that day, provided that this provision shall not apply to
10    any non-host licensee that derives its license from a track
11    located in a county with a population in excess of 230,000
12    and that borders the Mississippi River.
13        (9) (Blank).
14        (10) (Blank).
15        (11) (Blank).
16        (12) The Board shall have authority to compel all host
17    tracks to receive the simulcast of any or all races
18    conducted at the Springfield or DuQuoin State fairgrounds
19    and include all such races as part of their simulcast
20    programs.
21        (13) Notwithstanding any other provision of this Act,
22    in the event that the total Illinois pari-mutuel handle on
23    Illinois horse races at all wagering facilities in any
24    calendar year is less than 75% of the total Illinois
25    pari-mutuel handle on Illinois horse races at all such
26    wagering facilities for calendar year 1994, then each

 

 

SB3387 Enrolled- 20 -LRB100 19071 SMS 34327 b

1    wagering facility that has an annual total Illinois
2    pari-mutuel handle on Illinois horse races that is less
3    than 75% of the total Illinois pari-mutuel handle on
4    Illinois horse races at such wagering facility for calendar
5    year 1994, shall be permitted to receive, from any amount
6    otherwise payable to the purse account at the race track
7    with which the wagering facility is affiliated in the
8    succeeding calendar year, an amount equal to 2% of the
9    differential in total Illinois pari-mutuel handle on
10    Illinois horse races at the wagering facility between that
11    calendar year in question and 1994 provided, however, that
12    a wagering facility shall not be entitled to any such
13    payment until the Board certifies in writing to the
14    wagering facility the amount to which the wagering facility
15    is entitled and a schedule for payment of the amount to the
16    wagering facility, based on: (i) the racing dates awarded
17    to the race track affiliated with the wagering facility
18    during the succeeding year; (ii) the sums available or
19    anticipated to be available in the purse account of the
20    race track affiliated with the wagering facility for purses
21    during the succeeding year; and (iii) the need to ensure
22    reasonable purse levels during the payment period. The
23    Board's certification shall be provided no later than
24    January 31 of the succeeding year. In the event a wagering
25    facility entitled to a payment under this paragraph (13) is
26    affiliated with a race track that maintains purse accounts

 

 

SB3387 Enrolled- 21 -LRB100 19071 SMS 34327 b

1    for both standardbred and thoroughbred racing, the amount
2    to be paid to the wagering facility shall be divided
3    between each purse account pro rata, based on the amount of
4    Illinois handle on Illinois standardbred and thoroughbred
5    racing respectively at the wagering facility during the
6    previous calendar year. Annually, the General Assembly
7    shall appropriate sufficient funds from the General
8    Revenue Fund to the Department of Agriculture for payment
9    into the thoroughbred and standardbred horse racing purse
10    accounts at Illinois pari-mutuel tracks. The amount paid to
11    each purse account shall be the amount certified by the
12    Illinois Racing Board in January to be transferred from
13    each account to each eligible racing facility in accordance
14    with the provisions of this Section.
15    (h) The Board may approve and license the conduct of
16inter-track wagering and simulcast wagering by inter-track
17wagering licensees and inter-track wagering location licensees
18subject to the following terms and conditions:
19        (1) Any person licensed to conduct a race meeting (i)
20    at a track where 60 or more days of racing were conducted
21    during the immediately preceding calendar year or where
22    over the 5 immediately preceding calendar years an average
23    of 30 or more days of racing were conducted annually may be
24    issued an inter-track wagering license; (ii) at a track
25    located in a county that is bounded by the Mississippi
26    River, which has a population of less than 150,000

 

 

SB3387 Enrolled- 22 -LRB100 19071 SMS 34327 b

1    according to the 1990 decennial census, and an average of
2    at least 60 days of racing per year between 1985 and 1993
3    may be issued an inter-track wagering license; or (iii) at
4    a track located in Madison County that conducted at least
5    100 days of live racing during the immediately preceding
6    calendar year may be issued an inter-track wagering
7    license, unless a lesser schedule of live racing is the
8    result of (A) weather, unsafe track conditions, or other
9    acts of God; (B) an agreement between the organization
10    licensee and the associations representing the largest
11    number of owners, trainers, jockeys, or standardbred
12    drivers who race horses at that organization licensee's
13    racing meeting; or (C) a finding by the Board of
14    extraordinary circumstances and that it was in the best
15    interest of the public and the sport to conduct fewer than
16    100 days of live racing. Any such person having operating
17    control of the racing facility may receive inter-track
18    wagering location licenses. An eligible race track located
19    in a county that has a population of more than 230,000 and
20    that is bounded by the Mississippi River may establish up
21    to 9 inter-track wagering locations, an eligible race track
22    located in Stickney Township in Cook County may establish
23    up to 16 inter-track wagering locations, and an eligible
24    race track located in Palatine Township in Cook County may
25    establish up to 18 inter-track wagering locations. An
26    application for said license shall be filed with the Board

 

 

SB3387 Enrolled- 23 -LRB100 19071 SMS 34327 b

1    prior to such dates as may be fixed by the Board. With an
2    application for an inter-track wagering location license
3    there shall be delivered to the Board a certified check or
4    bank draft payable to the order of the Board for an amount
5    equal to $500. The application shall be on forms prescribed
6    and furnished by the Board. The application shall comply
7    with all other rules, regulations and conditions imposed by
8    the Board in connection therewith.
9        (2) The Board shall examine the applications with
10    respect to their conformity with this Act and the rules and
11    regulations imposed by the Board. If found to be in
12    compliance with the Act and rules and regulations of the
13    Board, the Board may then issue a license to conduct
14    inter-track wagering and simulcast wagering to such
15    applicant. All such applications shall be acted upon by the
16    Board at a meeting to be held on such date as may be fixed
17    by the Board.
18        (3) In granting licenses to conduct inter-track
19    wagering and simulcast wagering, the Board shall give due
20    consideration to the best interests of the public, of horse
21    racing, and of maximizing revenue to the State.
22        (4) Prior to the issuance of a license to conduct
23    inter-track wagering and simulcast wagering, the applicant
24    shall file with the Board a bond payable to the State of
25    Illinois in the sum of $50,000, executed by the applicant
26    and a surety company or companies authorized to do business

 

 

SB3387 Enrolled- 24 -LRB100 19071 SMS 34327 b

1    in this State, and conditioned upon (i) the payment by the
2    licensee of all taxes due under Section 27 or 27.1 and any
3    other monies due and payable under this Act, and (ii)
4    distribution by the licensee, upon presentation of the
5    winning ticket or tickets, of all sums payable to the
6    patrons of pari-mutuel pools.
7        (5) Each license to conduct inter-track wagering and
8    simulcast wagering shall specify the person to whom it is
9    issued, the dates on which such wagering is permitted, and
10    the track or location where the wagering is to be
11    conducted.
12        (6) All wagering under such license is subject to this
13    Act and to the rules and regulations from time to time
14    prescribed by the Board, and every such license issued by
15    the Board shall contain a recital to that effect.
16        (7) An inter-track wagering licensee or inter-track
17    wagering location licensee may accept wagers at the track
18    or location where it is licensed, or as otherwise provided
19    under this Act.
20        (8) Inter-track wagering or simulcast wagering shall
21    not be conducted at any track less than 5 miles from a
22    track at which a racing meeting is in progress.
23        (8.1) Inter-track wagering location licensees who
24    derive their licenses from a particular organization
25    licensee shall conduct inter-track wagering and simulcast
26    wagering only at locations that are within 160 miles of

 

 

SB3387 Enrolled- 25 -LRB100 19071 SMS 34327 b

1    that race track where the particular organization licensee
2    is licensed to conduct racing. However, inter-track
3    wagering and simulcast wagering shall not be conducted by
4    those licensees at any location within 5 miles of any race
5    track at which a horse race meeting has been licensed in
6    the current year, unless the person having operating
7    control of such race track has given its written consent to
8    such inter-track wagering location licensees, which
9    consent must be filed with the Board at or prior to the
10    time application is made. In the case of any inter-track
11    wagering location licensee initially licensed after
12    December 31, 2013, inter-track wagering and simulcast
13    wagering shall not be conducted by those inter-track
14    wagering location licensees that are located outside the
15    City of Chicago at any location within 8 miles of any race
16    track at which a horse race meeting has been licensed in
17    the current year, unless the person having operating
18    control of such race track has given its written consent to
19    such inter-track wagering location licensees, which
20    consent must be filed with the Board at or prior to the
21    time application is made.
22        (8.2) Inter-track wagering or simulcast wagering shall
23    not be conducted by an inter-track wagering location
24    licensee at any location within 500 feet of an existing
25    church or existing school, nor within 500 feet of the
26    residences of more than 50 registered voters without

 

 

SB3387 Enrolled- 26 -LRB100 19071 SMS 34327 b

1    receiving written permission from a majority of the
2    registered voters at such residences. Such written
3    permission statements shall be filed with the Board. The
4    distance of 500 feet shall be measured to the nearest part
5    of any building used for worship services, education
6    programs, residential purposes, or conducting inter-track
7    wagering by an inter-track wagering location licensee, and
8    not to property boundaries. However, inter-track wagering
9    or simulcast wagering may be conducted at a site within 500
10    feet of a church, school or residences of 50 or more
11    registered voters if such church, school or residences have
12    been erected or established, or such voters have been
13    registered, after the Board issues the original
14    inter-track wagering location license at the site in
15    question. Inter-track wagering location licensees may
16    conduct inter-track wagering and simulcast wagering only
17    in areas that are zoned for commercial or manufacturing
18    purposes or in areas for which a special use has been
19    approved by the local zoning authority. However, no license
20    to conduct inter-track wagering and simulcast wagering
21    shall be granted by the Board with respect to any
22    inter-track wagering location within the jurisdiction of
23    any local zoning authority which has, by ordinance or by
24    resolution, prohibited the establishment of an inter-track
25    wagering location within its jurisdiction. However,
26    inter-track wagering and simulcast wagering may be

 

 

SB3387 Enrolled- 27 -LRB100 19071 SMS 34327 b

1    conducted at a site if such ordinance or resolution is
2    enacted after the Board licenses the original inter-track
3    wagering location licensee for the site in question.
4        (9) (Blank).
5        (10) An inter-track wagering licensee or an
6    inter-track wagering location licensee may retain, subject
7    to the payment of the privilege taxes and the purses, an
8    amount not to exceed 17% of all money wagered. Each program
9    of racing conducted by each inter-track wagering licensee
10    or inter-track wagering location licensee shall be
11    considered a separate racing day for the purpose of
12    determining the daily handle and computing the privilege
13    tax or pari-mutuel tax on such daily handle as provided in
14    Section 27.
15        (10.1) Except as provided in subsection (g) of Section
16    27 of this Act, inter-track wagering location licensees
17    shall pay 1% of the pari-mutuel handle at each location to
18    the municipality in which such location is situated and 1%
19    of the pari-mutuel handle at each location to the county in
20    which such location is situated. In the event that an
21    inter-track wagering location licensee is situated in an
22    unincorporated area of a county, such licensee shall pay 2%
23    of the pari-mutuel handle from such location to such
24    county.
25        (10.2) Notwithstanding any other provision of this
26    Act, with respect to inter-track wagering at a race track

 

 

SB3387 Enrolled- 28 -LRB100 19071 SMS 34327 b

1    located in a county that has a population of more than
2    230,000 and that is bounded by the Mississippi River ("the
3    first race track"), or at a facility operated by an
4    inter-track wagering licensee or inter-track wagering
5    location licensee that derives its license from the
6    organization licensee that operates the first race track,
7    on races conducted at the first race track or on races
8    conducted at another Illinois race track and
9    simultaneously televised to the first race track or to a
10    facility operated by an inter-track wagering licensee or
11    inter-track wagering location licensee that derives its
12    license from the organization licensee that operates the
13    first race track, those moneys shall be allocated as
14    follows:
15            (A) That portion of all moneys wagered on
16        standardbred racing that is required under this Act to
17        be paid to purses shall be paid to purses for
18        standardbred races.
19            (B) That portion of all moneys wagered on
20        thoroughbred racing that is required under this Act to
21        be paid to purses shall be paid to purses for
22        thoroughbred races.
23        (11) (A) After payment of the privilege or pari-mutuel
24    tax, any other applicable taxes, and the costs and expenses
25    in connection with the gathering, transmission, and
26    dissemination of all data necessary to the conduct of

 

 

SB3387 Enrolled- 29 -LRB100 19071 SMS 34327 b

1    inter-track wagering, the remainder of the monies retained
2    under either Section 26 or Section 26.2 of this Act by the
3    inter-track wagering licensee on inter-track wagering
4    shall be allocated with 50% to be split between the 2
5    participating licensees and 50% to purses, except that an
6    inter-track wagering licensee that derives its license
7    from a track located in a county with a population in
8    excess of 230,000 and that borders the Mississippi River
9    shall not divide any remaining retention with the Illinois
10    organization licensee that provides the race or races, and
11    an inter-track wagering licensee that accepts wagers on
12    races conducted by an organization licensee that conducts a
13    race meet in a county with a population in excess of
14    230,000 and that borders the Mississippi River shall not
15    divide any remaining retention with that organization
16    licensee.
17        (B) From the sums permitted to be retained pursuant to
18    this Act each inter-track wagering location licensee shall
19    pay (i) the privilege or pari-mutuel tax to the State; (ii)
20    4.75% of the pari-mutuel handle on inter-track wagering at
21    such location on races as purses, except that an
22    inter-track wagering location licensee that derives its
23    license from a track located in a county with a population
24    in excess of 230,000 and that borders the Mississippi River
25    shall retain all purse moneys for its own purse account
26    consistent with distribution set forth in this subsection

 

 

SB3387 Enrolled- 30 -LRB100 19071 SMS 34327 b

1    (h), and inter-track wagering location licensees that
2    accept wagers on races conducted by an organization
3    licensee located in a county with a population in excess of
4    230,000 and that borders the Mississippi River shall
5    distribute all purse moneys to purses at the operating host
6    track; (iii) until January 1, 2000, except as provided in
7    subsection (g) of Section 27 of this Act, 1% of the
8    pari-mutuel handle wagered on inter-track wagering and
9    simulcast wagering at each inter-track wagering location
10    licensee facility to the Horse Racing Tax Allocation Fund,
11    provided that, to the extent the total amount collected and
12    distributed to the Horse Racing Tax Allocation Fund under
13    this subsection (h) during any calendar year exceeds the
14    amount collected and distributed to the Horse Racing Tax
15    Allocation Fund during calendar year 1994, that excess
16    amount shall be redistributed (I) to all inter-track
17    wagering location licensees, based on each licensee's
18    pro-rata share of the total handle from inter-track
19    wagering and simulcast wagering for all inter-track
20    wagering location licensees during the calendar year in
21    which this provision is applicable; then (II) the amounts
22    redistributed to each inter-track wagering location
23    licensee as described in subpart (I) shall be further
24    redistributed as provided in subparagraph (B) of paragraph
25    (5) of subsection (g) of this Section 26 provided first,
26    that the shares of those amounts, which are to be

 

 

SB3387 Enrolled- 31 -LRB100 19071 SMS 34327 b

1    redistributed to the host track or to purses at the host
2    track under subparagraph (B) of paragraph (5) of subsection
3    (g) of this Section 26 shall be redistributed based on each
4    host track's pro rata share of the total inter-track
5    wagering and simulcast wagering handle at all host tracks
6    during the calendar year in question, and second, that any
7    amounts redistributed as described in part (I) to an
8    inter-track wagering location licensee that accepts wagers
9    on races conducted by an organization licensee that
10    conducts a race meet in a county with a population in
11    excess of 230,000 and that borders the Mississippi River
12    shall be further redistributed, effective January 1, 2017,
13    as provided in subparagraphs (D) and (E) of paragraph (7)
14    of subsection (g) of this Section 26, with the portion of
15    that further redistribution allocated to purses at that
16    organization licensee to be divided between standardbred
17    purses and thoroughbred purses based on the amounts
18    otherwise allocated to purses at that organization
19    licensee during the calendar year in question; and (iv) 8%
20    of the pari-mutuel handle on inter-track wagering wagered
21    at such location to satisfy all costs and expenses of
22    conducting its wagering. The remainder of the monies
23    retained by the inter-track wagering location licensee
24    shall be allocated 40% to the location licensee and 60% to
25    the organization licensee which provides the Illinois
26    races to the location, except that an inter-track wagering

 

 

SB3387 Enrolled- 32 -LRB100 19071 SMS 34327 b

1    location licensee that derives its license from a track
2    located in a county with a population in excess of 230,000
3    and that borders the Mississippi River shall not divide any
4    remaining retention with the organization licensee that
5    provides the race or races and an inter-track wagering
6    location licensee that accepts wagers on races conducted by
7    an organization licensee that conducts a race meet in a
8    county with a population in excess of 230,000 and that
9    borders the Mississippi River shall not divide any
10    remaining retention with the organization licensee.
11    Notwithstanding the provisions of clauses (ii) and (iv) of
12    this paragraph, in the case of the additional inter-track
13    wagering location licenses authorized under paragraph (1)
14    of this subsection (h) by Public Act 87-110, those
15    licensees shall pay the following amounts as purses: during
16    the first 12 months the licensee is in operation, 5.25% of
17    the pari-mutuel handle wagered at the location on races;
18    during the second 12 months, 5.25%; during the third 12
19    months, 5.75%; during the fourth 12 months, 6.25%; and
20    during the fifth 12 months and thereafter, 6.75%. The
21    following amounts shall be retained by the licensee to
22    satisfy all costs and expenses of conducting its wagering:
23    during the first 12 months the licensee is in operation,
24    8.25% of the pari-mutuel handle wagered at the location;
25    during the second 12 months, 8.25%; during the third 12
26    months, 7.75%; during the fourth 12 months, 7.25%; and

 

 

SB3387 Enrolled- 33 -LRB100 19071 SMS 34327 b

1    during the fifth 12 months and thereafter, 6.75%. For
2    additional inter-track wagering location licensees
3    authorized under Public Act 89-16, purses for the first 12
4    months the licensee is in operation shall be 5.75% of the
5    pari-mutuel wagered at the location, purses for the second
6    12 months the licensee is in operation shall be 6.25%, and
7    purses thereafter shall be 6.75%. For additional
8    inter-track location licensees authorized under Public Act
9    89-16, the licensee shall be allowed to retain to satisfy
10    all costs and expenses: 7.75% of the pari-mutuel handle
11    wagered at the location during its first 12 months of
12    operation, 7.25% during its second 12 months of operation,
13    and 6.75% thereafter.
14        (C) There is hereby created the Horse Racing Tax
15    Allocation Fund which shall remain in existence until
16    December 31, 1999. Moneys remaining in the Fund after
17    December 31, 1999 shall be paid into the General Revenue
18    Fund. Until January 1, 2000, all monies paid into the Horse
19    Racing Tax Allocation Fund pursuant to this paragraph (11)
20    by inter-track wagering location licensees located in park
21    districts of 500,000 population or less, or in a
22    municipality that is not included within any park district
23    but is included within a conservation district and is the
24    county seat of a county that (i) is contiguous to the state
25    of Indiana and (ii) has a 1990 population of 88,257
26    according to the United States Bureau of the Census, and

 

 

SB3387 Enrolled- 34 -LRB100 19071 SMS 34327 b

1    operating on May 1, 1994 shall be allocated by
2    appropriation as follows:
3            Two-sevenths to the Department of Agriculture.
4        Fifty percent of this two-sevenths shall be used to
5        promote the Illinois horse racing and breeding
6        industry, and shall be distributed by the Department of
7        Agriculture upon the advice of a 9-member committee
8        appointed by the Governor consisting of the following
9        members: the Director of Agriculture, who shall serve
10        as chairman; 2 representatives of organization
11        licensees conducting thoroughbred race meetings in
12        this State, recommended by those licensees; 2
13        representatives of organization licensees conducting
14        standardbred race meetings in this State, recommended
15        by those licensees; a representative of the Illinois
16        Thoroughbred Breeders and Owners Foundation,
17        recommended by that Foundation; a representative of
18        the Illinois Standardbred Owners and Breeders
19        Association, recommended by that Association; a
20        representative of the Horsemen's Benevolent and
21        Protective Association or any successor organization
22        thereto established in Illinois comprised of the
23        largest number of owners and trainers, recommended by
24        that Association or that successor organization; and a
25        representative of the Illinois Harness Horsemen's
26        Association, recommended by that Association.

 

 

SB3387 Enrolled- 35 -LRB100 19071 SMS 34327 b

1        Committee members shall serve for terms of 2 years,
2        commencing January 1 of each even-numbered year. If a
3        representative of any of the above-named entities has
4        not been recommended by January 1 of any even-numbered
5        year, the Governor shall appoint a committee member to
6        fill that position. Committee members shall receive no
7        compensation for their services as members but shall be
8        reimbursed for all actual and necessary expenses and
9        disbursements incurred in the performance of their
10        official duties. The remaining 50% of this
11        two-sevenths shall be distributed to county fairs for
12        premiums and rehabilitation as set forth in the
13        Agricultural Fair Act;
14            Four-sevenths to park districts or municipalities
15        that do not have a park district of 500,000 population
16        or less for museum purposes (if an inter-track wagering
17        location licensee is located in such a park district)
18        or to conservation districts for museum purposes (if an
19        inter-track wagering location licensee is located in a
20        municipality that is not included within any park
21        district but is included within a conservation
22        district and is the county seat of a county that (i) is
23        contiguous to the state of Indiana and (ii) has a 1990
24        population of 88,257 according to the United States
25        Bureau of the Census, except that if the conservation
26        district does not maintain a museum, the monies shall

 

 

SB3387 Enrolled- 36 -LRB100 19071 SMS 34327 b

1        be allocated equally between the county and the
2        municipality in which the inter-track wagering
3        location licensee is located for general purposes) or
4        to a municipal recreation board for park purposes (if
5        an inter-track wagering location licensee is located
6        in a municipality that is not included within any park
7        district and park maintenance is the function of the
8        municipal recreation board and the municipality has a
9        1990 population of 9,302 according to the United States
10        Bureau of the Census); provided that the monies are
11        distributed to each park district or conservation
12        district or municipality that does not have a park
13        district in an amount equal to four-sevenths of the
14        amount collected by each inter-track wagering location
15        licensee within the park district or conservation
16        district or municipality for the Fund. Monies that were
17        paid into the Horse Racing Tax Allocation Fund before
18        August 9, 1991 (the effective date of Public Act
19        87-110) by an inter-track wagering location licensee
20        located in a municipality that is not included within
21        any park district but is included within a conservation
22        district as provided in this paragraph shall, as soon
23        as practicable after August 9, 1991 (the effective date
24        of Public Act 87-110), be allocated and paid to that
25        conservation district as provided in this paragraph.
26        Any park district or municipality not maintaining a

 

 

SB3387 Enrolled- 37 -LRB100 19071 SMS 34327 b

1        museum may deposit the monies in the corporate fund of
2        the park district or municipality where the
3        inter-track wagering location is located, to be used
4        for general purposes; and
5            One-seventh to the Agricultural Premium Fund to be
6        used for distribution to agricultural home economics
7        extension councils in accordance with "An Act in
8        relation to additional support and finances for the
9        Agricultural and Home Economic Extension Councils in
10        the several counties of this State and making an
11        appropriation therefor", approved July 24, 1967.
12        Until January 1, 2000, all other monies paid into the
13    Horse Racing Tax Allocation Fund pursuant to this paragraph
14    (11) shall be allocated by appropriation as follows:
15            Two-sevenths to the Department of Agriculture.
16        Fifty percent of this two-sevenths shall be used to
17        promote the Illinois horse racing and breeding
18        industry, and shall be distributed by the Department of
19        Agriculture upon the advice of a 9-member committee
20        appointed by the Governor consisting of the following
21        members: the Director of Agriculture, who shall serve
22        as chairman; 2 representatives of organization
23        licensees conducting thoroughbred race meetings in
24        this State, recommended by those licensees; 2
25        representatives of organization licensees conducting
26        standardbred race meetings in this State, recommended

 

 

SB3387 Enrolled- 38 -LRB100 19071 SMS 34327 b

1        by those licensees; a representative of the Illinois
2        Thoroughbred Breeders and Owners Foundation,
3        recommended by that Foundation; a representative of
4        the Illinois Standardbred Owners and Breeders
5        Association, recommended by that Association; a
6        representative of the Horsemen's Benevolent and
7        Protective Association or any successor organization
8        thereto established in Illinois comprised of the
9        largest number of owners and trainers, recommended by
10        that Association or that successor organization; and a
11        representative of the Illinois Harness Horsemen's
12        Association, recommended by that Association.
13        Committee members shall serve for terms of 2 years,
14        commencing January 1 of each even-numbered year. If a
15        representative of any of the above-named entities has
16        not been recommended by January 1 of any even-numbered
17        year, the Governor shall appoint a committee member to
18        fill that position. Committee members shall receive no
19        compensation for their services as members but shall be
20        reimbursed for all actual and necessary expenses and
21        disbursements incurred in the performance of their
22        official duties. The remaining 50% of this
23        two-sevenths shall be distributed to county fairs for
24        premiums and rehabilitation as set forth in the
25        Agricultural Fair Act;
26            Four-sevenths to museums and aquariums located in

 

 

SB3387 Enrolled- 39 -LRB100 19071 SMS 34327 b

1        park districts of over 500,000 population; provided
2        that the monies are distributed in accordance with the
3        previous year's distribution of the maintenance tax
4        for such museums and aquariums as provided in Section 2
5        of the Park District Aquarium and Museum Act; and
6            One-seventh to the Agricultural Premium Fund to be
7        used for distribution to agricultural home economics
8        extension councils in accordance with "An Act in
9        relation to additional support and finances for the
10        Agricultural and Home Economic Extension Councils in
11        the several counties of this State and making an
12        appropriation therefor", approved July 24, 1967. This
13        subparagraph (C) shall be inoperative and of no force
14        and effect on and after January 1, 2000.
15            (D) Except as provided in paragraph (11) of this
16        subsection (h), with respect to purse allocation from
17        inter-track wagering, the monies so retained shall be
18        divided as follows:
19                (i) If the inter-track wagering licensee,
20            except an inter-track wagering licensee that
21            derives its license from an organization licensee
22            located in a county with a population in excess of
23            230,000 and bounded by the Mississippi River, is
24            not conducting its own race meeting during the same
25            dates, then the entire purse allocation shall be to
26            purses at the track where the races wagered on are

 

 

SB3387 Enrolled- 40 -LRB100 19071 SMS 34327 b

1            being conducted.
2                (ii) If the inter-track wagering licensee,
3            except an inter-track wagering licensee that
4            derives its license from an organization licensee
5            located in a county with a population in excess of
6            230,000 and bounded by the Mississippi River, is
7            also conducting its own race meeting during the
8            same dates, then the purse allocation shall be as
9            follows: 50% to purses at the track where the races
10            wagered on are being conducted; 50% to purses at
11            the track where the inter-track wagering licensee
12            is accepting such wagers.
13                (iii) If the inter-track wagering is being
14            conducted by an inter-track wagering location
15            licensee, except an inter-track wagering location
16            licensee that derives its license from an
17            organization licensee located in a county with a
18            population in excess of 230,000 and bounded by the
19            Mississippi River, the entire purse allocation for
20            Illinois races shall be to purses at the track
21            where the race meeting being wagered on is being
22            held.
23        (12) The Board shall have all powers necessary and
24    proper to fully supervise and control the conduct of
25    inter-track wagering and simulcast wagering by inter-track
26    wagering licensees and inter-track wagering location

 

 

SB3387 Enrolled- 41 -LRB100 19071 SMS 34327 b

1    licensees, including, but not limited to the following:
2            (A) The Board is vested with power to promulgate
3        reasonable rules and regulations for the purpose of
4        administering the conduct of this wagering and to
5        prescribe reasonable rules, regulations and conditions
6        under which such wagering shall be held and conducted.
7        Such rules and regulations are to provide for the
8        prevention of practices detrimental to the public
9        interest and for the best interests of said wagering
10        and to impose penalties for violations thereof.
11            (B) The Board, and any person or persons to whom it
12        delegates this power, is vested with the power to enter
13        the facilities of any licensee to determine whether
14        there has been compliance with the provisions of this
15        Act and the rules and regulations relating to the
16        conduct of such wagering.
17            (C) The Board, and any person or persons to whom it
18        delegates this power, may eject or exclude from any
19        licensee's facilities, any person whose conduct or
20        reputation is such that his presence on such premises
21        may, in the opinion of the Board, call into the
22        question the honesty and integrity of, or interfere
23        with the orderly conduct of such wagering; provided,
24        however, that no person shall be excluded or ejected
25        from such premises solely on the grounds of race,
26        color, creed, national origin, ancestry, or sex.

 

 

SB3387 Enrolled- 42 -LRB100 19071 SMS 34327 b

1            (D) (Blank).
2            (E) The Board is vested with the power to appoint
3        delegates to execute any of the powers granted to it
4        under this Section for the purpose of administering
5        this wagering and any rules and regulations
6        promulgated in accordance with this Act.
7            (F) The Board shall name and appoint a State
8        director of this wagering who shall be a representative
9        of the Board and whose duty it shall be to supervise
10        the conduct of inter-track wagering as may be provided
11        for by the rules and regulations of the Board; such
12        rules and regulation shall specify the method of
13        appointment and the Director's powers, authority and
14        duties.
15            (G) The Board is vested with the power to impose
16        civil penalties of up to $5,000 against individuals and
17        up to $10,000 against licensees for each violation of
18        any provision of this Act relating to the conduct of
19        this wagering, any rules adopted by the Board, any
20        order of the Board or any other action which in the
21        Board's discretion, is a detriment or impediment to
22        such wagering.
23        (13) The Department of Agriculture may enter into
24    agreements with licensees authorizing such licensees to
25    conduct inter-track wagering on races to be held at the
26    licensed race meetings conducted by the Department of

 

 

SB3387 Enrolled- 43 -LRB100 19071 SMS 34327 b

1    Agriculture. Such agreement shall specify the races of the
2    Department of Agriculture's licensed race meeting upon
3    which the licensees will conduct wagering. In the event
4    that a licensee conducts inter-track pari-mutuel wagering
5    on races from the Illinois State Fair or DuQuoin State Fair
6    which are in addition to the licensee's previously approved
7    racing program, those races shall be considered a separate
8    racing day for the purpose of determining the daily handle
9    and computing the privilege or pari-mutuel tax on that
10    daily handle as provided in Sections 27 and 27.1. Such
11    agreements shall be approved by the Board before such
12    wagering may be conducted. In determining whether to grant
13    approval, the Board shall give due consideration to the
14    best interests of the public and of horse racing. The
15    provisions of paragraphs (1), (8), (8.1), and (8.2) of
16    subsection (h) of this Section which are not specified in
17    this paragraph (13) shall not apply to licensed race
18    meetings conducted by the Department of Agriculture at the
19    Illinois State Fair in Sangamon County or the DuQuoin State
20    Fair in Perry County, or to any wagering conducted on those
21    race meetings.
22        (14) An inter-track wagering location license
23    authorized by the Board in 2016 that is owned and operated
24    by a race track in Rock Island County shall be transferred
25    to a commonly owned race track in Cook County on August 12,
26    2016 (the effective date of Public Act 99-757). The

 

 

SB3387 Enrolled- 44 -LRB100 19071 SMS 34327 b

1    licensee shall retain its status in relation to purse
2    distribution under paragraph (11) of this subsection (h)
3    following the transfer to the new entity. The pari-mutuel
4    tax credit under Section 32.1 shall not be applied toward
5    any pari-mutuel tax obligation of the inter-track wagering
6    location licensee of the license that is transferred under
7    this paragraph (14).
8    (i) Notwithstanding the other provisions of this Act, the
9conduct of wagering at wagering facilities is authorized on all
10days, except as limited by subsection (b) of Section 19 of this
11Act.
12(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
13100-201, eff. 8-18-17.)
 
14    Section 10. The Riverboat Gambling Act is amended by
15changing Sections 5, 7, and 7.6 as follows:
 
16    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
17    Sec. 5. Gaming Board.
18    (a) (1) There is hereby established the Illinois Gaming
19Board, which shall have the powers and duties specified in this
20Act, and all other powers necessary and proper to fully and
21effectively execute this Act for the purpose of administering,
22regulating, and enforcing the system of riverboat gambling
23established by this Act. Its jurisdiction shall extend under
24this Act to every person, association, corporation,

 

 

SB3387 Enrolled- 45 -LRB100 19071 SMS 34327 b

1partnership and trust involved in riverboat gambling
2operations in the State of Illinois.
3    (2) The Board shall consist of 5 members to be appointed by
4the Governor with the advice and consent of the Senate, one of
5whom shall be designated by the Governor to be chairman. Each
6member shall have a reasonable knowledge of the practice,
7procedure and principles of gambling operations. Each member
8shall either be a resident of Illinois or shall certify that he
9will become a resident of Illinois before taking office. At
10least one member shall be experienced in law enforcement and
11criminal investigation, at least one member shall be a
12certified public accountant experienced in accounting and
13auditing, and at least one member shall be a lawyer licensed to
14practice law in Illinois.
15    (3) The terms of office of the Board members shall be 3
16years, except that the terms of office of the initial Board
17members appointed pursuant to this Act will commence from the
18effective date of this Act and run as follows: one for a term
19ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
20a term ending July 1, 1993. Upon the expiration of the
21foregoing terms, the successors of such members shall serve a
22term for 3 years and until their successors are appointed and
23qualified for like terms. Vacancies in the Board shall be
24filled for the unexpired term in like manner as original
25appointments. Each member of the Board shall be eligible for
26reappointment at the discretion of the Governor with the advice

 

 

SB3387 Enrolled- 46 -LRB100 19071 SMS 34327 b

1and consent of the Senate.
2    (4) Each member of the Board shall receive $300 for each
3day the Board meets and for each day the member conducts any
4hearing pursuant to this Act. Each member of the Board shall
5also be reimbursed for all actual and necessary expenses and
6disbursements incurred in the execution of official duties.
7    (5) No person shall be appointed a member of the Board or
8continue to be a member of the Board who is, or whose spouse,
9child or parent is, a member of the board of directors of, or a
10person financially interested in, any gambling operation
11subject to the jurisdiction of this Board, or any race track,
12race meeting, racing association or the operations thereof
13subject to the jurisdiction of the Illinois Racing Board. No
14Board member shall hold any other public office. No person
15shall be a member of the Board who is not of good moral
16character or who has been convicted of, or is under indictment
17for, a felony under the laws of Illinois or any other state, or
18the United States.
19    (5.5) No member of the Board shall engage in any political
20activity. For the purposes of this Section, "political" means
21any activity in support of or in connection with any campaign
22for federal, State, or local elective office or any political
23organization, but does not include activities (i) relating to
24the support or opposition of any executive, legislative, or
25administrative action (as those terms are defined in Section 2
26of the Lobbyist Registration Act), (ii) relating to collective

 

 

SB3387 Enrolled- 47 -LRB100 19071 SMS 34327 b

1bargaining, or (iii) that are otherwise in furtherance of the
2person's official State duties or governmental and public
3service functions.
4    (6) Any member of the Board may be removed by the Governor
5for neglect of duty, misfeasance, malfeasance, or nonfeasance
6in office or for engaging in any political activity.
7    (7) Before entering upon the discharge of the duties of his
8office, each member of the Board shall take an oath that he
9will faithfully execute the duties of his office according to
10the laws of the State and the rules and regulations adopted
11therewith and shall give bond to the State of Illinois,
12approved by the Governor, in the sum of $25,000. Every such
13bond, when duly executed and approved, shall be recorded in the
14office of the Secretary of State. Whenever the Governor
15determines that the bond of any member of the Board has become
16or is likely to become invalid or insufficient, he shall
17require such member forthwith to renew his bond, which is to be
18approved by the Governor. Any member of the Board who fails to
19take oath and give bond within 30 days from the date of his
20appointment, or who fails to renew his bond within 30 days
21after it is demanded by the Governor, shall be guilty of
22neglect of duty and may be removed by the Governor. The cost of
23any bond given by any member of the Board under this Section
24shall be taken to be a part of the necessary expenses of the
25Board.
26    (7.5) For the examination of all mechanical,

 

 

SB3387 Enrolled- 48 -LRB100 19071 SMS 34327 b

1electromechanical, or electronic table games, slot machines,
2slot accounting systems, and other electronic gaming equipment
3for compliance with this Act, the Board may utilize the
4services of one or more independent outside testing
5laboratories that have been accredited by a national
6accreditation body and that, in the judgment of the Board, are
7qualified to perform such examinations.
8    (8) The Board shall employ such personnel as may be
9necessary to carry out its functions and shall determine the
10salaries of all personnel, except those personnel whose
11salaries are determined under the terms of a collective
12bargaining agreement. No person shall be employed to serve the
13Board who is, or whose spouse, parent or child is, an official
14of, or has a financial interest in or financial relation with,
15any operator engaged in gambling operations within this State
16or any organization engaged in conducting horse racing within
17this State. Any employee violating these prohibitions shall be
18subject to termination of employment.
19    (9) An Administrator shall perform any and all duties that
20the Board shall assign him. The salary of the Administrator
21shall be determined by the Board and, in addition, he shall be
22reimbursed for all actual and necessary expenses incurred by
23him in discharge of his official duties. The Administrator
24shall keep records of all proceedings of the Board and shall
25preserve all records, books, documents and other papers
26belonging to the Board or entrusted to its care. The

 

 

SB3387 Enrolled- 49 -LRB100 19071 SMS 34327 b

1Administrator shall devote his full time to the duties of the
2office and shall not hold any other office or employment.
3    (b) The Board shall have general responsibility for the
4implementation of this Act. Its duties include, without
5limitation, the following:
6        (1) To decide promptly and in reasonable order all
7    license applications. Any party aggrieved by an action of
8    the Board denying, suspending, revoking, restricting or
9    refusing to renew a license may request a hearing before
10    the Board. A request for a hearing must be made to the
11    Board in writing within 5 days after service of notice of
12    the action of the Board. Notice of the action of the Board
13    shall be served either by personal delivery or by certified
14    mail, postage prepaid, to the aggrieved party. Notice
15    served by certified mail shall be deemed complete on the
16    business day following the date of such mailing. The Board
17    shall conduct all requested hearings promptly and in
18    reasonable order;
19        (2) To conduct all hearings pertaining to civil
20    violations of this Act or rules and regulations promulgated
21    hereunder;
22        (3) To promulgate such rules and regulations as in its
23    judgment may be necessary to protect or enhance the
24    credibility and integrity of gambling operations
25    authorized by this Act and the regulatory process
26    hereunder;

 

 

SB3387 Enrolled- 50 -LRB100 19071 SMS 34327 b

1        (4) To provide for the establishment and collection of
2    all license and registration fees and taxes imposed by this
3    Act and the rules and regulations issued pursuant hereto.
4    All such fees and taxes shall be deposited into the State
5    Gaming Fund;
6        (5) To provide for the levy and collection of penalties
7    and fines for the violation of provisions of this Act and
8    the rules and regulations promulgated hereunder. All such
9    fines and penalties shall be deposited into the Education
10    Assistance Fund, created by Public Act 86-0018, of the
11    State of Illinois;
12        (6) To be present through its inspectors and agents any
13    time gambling operations are conducted on any riverboat for
14    the purpose of certifying the revenue thereof, receiving
15    complaints from the public, and conducting such other
16    investigations into the conduct of the gambling games and
17    the maintenance of the equipment as from time to time the
18    Board may deem necessary and proper;
19        (7) To review and rule upon any complaint by a licensee
20    regarding any investigative procedures of the State which
21    are unnecessarily disruptive of gambling operations. The
22    need to inspect and investigate shall be presumed at all
23    times. The disruption of a licensee's operations shall be
24    proved by clear and convincing evidence, and establish
25    that: (A) the procedures had no reasonable law enforcement
26    purposes, and (B) the procedures were so disruptive as to

 

 

SB3387 Enrolled- 51 -LRB100 19071 SMS 34327 b

1    unreasonably inhibit gambling operations;
2        (8) To hold at least one meeting each quarter of the
3    fiscal year. In addition, special meetings may be called by
4    the Chairman or any 2 Board members upon 72 hours written
5    notice to each member. All Board meetings shall be subject
6    to the Open Meetings Act. Three members of the Board shall
7    constitute a quorum, and 3 votes shall be required for any
8    final determination by the Board. The Board shall keep a
9    complete and accurate record of all its meetings. A
10    majority of the members of the Board shall constitute a
11    quorum for the transaction of any business, for the
12    performance of any duty, or for the exercise of any power
13    which this Act requires the Board members to transact,
14    perform or exercise en banc, except that, upon order of the
15    Board, one of the Board members or an administrative law
16    judge designated by the Board may conduct any hearing
17    provided for under this Act or by Board rule and may
18    recommend findings and decisions to the Board. The Board
19    member or administrative law judge conducting such hearing
20    shall have all powers and rights granted to the Board in
21    this Act. The record made at the time of the hearing shall
22    be reviewed by the Board, or a majority thereof, and the
23    findings and decision of the majority of the Board shall
24    constitute the order of the Board in such case;
25        (9) To maintain records which are separate and distinct
26    from the records of any other State board or commission.

 

 

SB3387 Enrolled- 52 -LRB100 19071 SMS 34327 b

1    Such records shall be available for public inspection and
2    shall accurately reflect all Board proceedings;
3        (10) To file a written annual report with the Governor
4    on or before July 1 March 1 each year and such additional
5    reports as the Governor may request. The annual report
6    shall include a statement of receipts and disbursements by
7    the Board, actions taken by the Board, and any additional
8    information and recommendations which the Board may deem
9    valuable or which the Governor may request;
10        (11) (Blank);
11        (12) (Blank);
12        (13) To assume responsibility for administration and
13    enforcement of the Video Gaming Act; and
14        (14) To adopt, by rule, a code of conduct governing
15    Board members and employees that ensure, to the maximum
16    extent possible, that persons subject to this Code avoid
17    situations, relationships, or associations that may
18    represent or lead to a conflict of interest.
19    (c) The Board shall have jurisdiction over and shall
20supervise all gambling operations governed by this Act. The
21Board shall have all powers necessary and proper to fully and
22effectively execute the provisions of this Act, including, but
23not limited to, the following:
24        (1) To investigate applicants and determine the
25    eligibility of applicants for licenses and to select among
26    competing applicants the applicants which best serve the

 

 

SB3387 Enrolled- 53 -LRB100 19071 SMS 34327 b

1    interests of the citizens of Illinois.
2        (2) To have jurisdiction and supervision over all
3    riverboat gambling operations in this State and all persons
4    on riverboats where gambling operations are conducted.
5        (3) To promulgate rules and regulations for the purpose
6    of administering the provisions of this Act and to
7    prescribe rules, regulations and conditions under which
8    all riverboat gambling in the State shall be conducted.
9    Such rules and regulations are to provide for the
10    prevention of practices detrimental to the public interest
11    and for the best interests of riverboat gambling, including
12    rules and regulations regarding the inspection of such
13    riverboats and the review of any permits or licenses
14    necessary to operate a riverboat under any laws or
15    regulations applicable to riverboats, and to impose
16    penalties for violations thereof.
17        (4) To enter the office, riverboats, facilities, or
18    other places of business of a licensee, where evidence of
19    the compliance or noncompliance with the provisions of this
20    Act is likely to be found.
21        (5) To investigate alleged violations of this Act or
22    the rules of the Board and to take appropriate disciplinary
23    action against a licensee or a holder of an occupational
24    license for a violation, or institute appropriate legal
25    action for enforcement, or both.
26        (6) To adopt standards for the licensing of all persons

 

 

SB3387 Enrolled- 54 -LRB100 19071 SMS 34327 b

1    under this Act, as well as for electronic or mechanical
2    gambling games, and to establish fees for such licenses.
3        (7) To adopt appropriate standards for all riverboats
4    and facilities.
5        (8) To require that the records, including financial or
6    other statements of any licensee under this Act, shall be
7    kept in such manner as prescribed by the Board and that any
8    such licensee involved in the ownership or management of
9    gambling operations submit to the Board an annual balance
10    sheet and profit and loss statement, list of the
11    stockholders or other persons having a 1% or greater
12    beneficial interest in the gambling activities of each
13    licensee, and any other information the Board deems
14    necessary in order to effectively administer this Act and
15    all rules, regulations, orders and final decisions
16    promulgated under this Act.
17        (9) To conduct hearings, issue subpoenas for the
18    attendance of witnesses and subpoenas duces tecum for the
19    production of books, records and other pertinent documents
20    in accordance with the Illinois Administrative Procedure
21    Act, and to administer oaths and affirmations to the
22    witnesses, when, in the judgment of the Board, it is
23    necessary to administer or enforce this Act or the Board
24    rules.
25        (10) To prescribe a form to be used by any licensee
26    involved in the ownership or management of gambling

 

 

SB3387 Enrolled- 55 -LRB100 19071 SMS 34327 b

1    operations as an application for employment for their
2    employees.
3        (11) To revoke or suspend licenses, as the Board may
4    see fit and in compliance with applicable laws of the State
5    regarding administrative procedures, and to review
6    applications for the renewal of licenses. The Board may
7    suspend an owners license, without notice or hearing upon a
8    determination that the safety or health of patrons or
9    employees is jeopardized by continuing a riverboat's
10    operation. The suspension may remain in effect until the
11    Board determines that the cause for suspension has been
12    abated. The Board may revoke the owners license upon a
13    determination that the owner has not made satisfactory
14    progress toward abating the hazard.
15        (12) To eject or exclude or authorize the ejection or
16    exclusion of, any person from riverboat gambling
17    facilities where such person is in violation of this Act,
18    rules and regulations thereunder, or final orders of the
19    Board, or where such person's conduct or reputation is such
20    that his presence within the riverboat gambling facilities
21    may, in the opinion of the Board, call into question the
22    honesty and integrity of the gambling operations or
23    interfere with orderly conduct thereof; provided that the
24    propriety of such ejection or exclusion is subject to
25    subsequent hearing by the Board.
26        (13) To require all licensees of gambling operations to

 

 

SB3387 Enrolled- 56 -LRB100 19071 SMS 34327 b

1    utilize a cashless wagering system whereby all players'
2    money is converted to tokens, electronic cards, or chips
3    which shall be used only for wagering in the gambling
4    establishment.
5        (14) (Blank).
6        (15) To suspend, revoke or restrict licenses, to
7    require the removal of a licensee or an employee of a
8    licensee for a violation of this Act or a Board rule or for
9    engaging in a fraudulent practice, and to impose civil
10    penalties of up to $5,000 against individuals and up to
11    $10,000 or an amount equal to the daily gross receipts,
12    whichever is larger, against licensees for each violation
13    of any provision of the Act, any rules adopted by the
14    Board, any order of the Board or any other action which, in
15    the Board's discretion, is a detriment or impediment to
16    riverboat gambling operations.
17        (16) To hire employees to gather information, conduct
18    investigations and carry out any other tasks contemplated
19    under this Act.
20        (17) To establish minimum levels of insurance to be
21    maintained by licensees.
22        (18) To authorize a licensee to sell or serve alcoholic
23    liquors, wine or beer as defined in the Liquor Control Act
24    of 1934 on board a riverboat and to have exclusive
25    authority to establish the hours for sale and consumption
26    of alcoholic liquor on board a riverboat, notwithstanding

 

 

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1    any provision of the Liquor Control Act of 1934 or any
2    local ordinance, and regardless of whether the riverboat
3    makes excursions. The establishment of the hours for sale
4    and consumption of alcoholic liquor on board a riverboat is
5    an exclusive power and function of the State. A home rule
6    unit may not establish the hours for sale and consumption
7    of alcoholic liquor on board a riverboat. This amendatory
8    Act of 1991 is a denial and limitation of home rule powers
9    and functions under subsection (h) of Section 6 of Article
10    VII of the Illinois Constitution.
11        (19) After consultation with the U.S. Army Corps of
12    Engineers, to establish binding emergency orders upon the
13    concurrence of a majority of the members of the Board
14    regarding the navigability of water, relative to
15    excursions, in the event of extreme weather conditions,
16    acts of God or other extreme circumstances.
17        (20) To delegate the execution of any of its powers
18    under this Act for the purpose of administering and
19    enforcing this Act and its rules and regulations hereunder.
20        (20.5) To approve any contract entered into on its
21    behalf.
22        (20.6) To appoint investigators to conduct
23    investigations, searches, seizures, arrests, and other
24    duties imposed under this Act, as deemed necessary by the
25    Board. These investigators have and may exercise all of the
26    rights and powers of peace officers, provided that these

 

 

SB3387 Enrolled- 58 -LRB100 19071 SMS 34327 b

1    powers shall be limited to offenses or violations occurring
2    or committed on a riverboat or dock, as defined in
3    subsections (d) and (f) of Section 4, or as otherwise
4    provided by this Act or any other law.
5        (20.7) To contract with the Department of State Police
6    for the use of trained and qualified State police officers
7    and with the Department of Revenue for the use of trained
8    and qualified Department of Revenue investigators to
9    conduct investigations, searches, seizures, arrests, and
10    other duties imposed under this Act and to exercise all of
11    the rights and powers of peace officers, provided that the
12    powers of Department of Revenue investigators under this
13    subdivision (20.7) shall be limited to offenses or
14    violations occurring or committed on a riverboat or dock,
15    as defined in subsections (d) and (f) of Section 4, or as
16    otherwise provided by this Act or any other law. In the
17    event the Department of State Police or the Department of
18    Revenue is unable to fill contracted police or
19    investigative positions, the Board may appoint
20    investigators to fill those positions pursuant to
21    subdivision (20.6).
22        (21) To take any other action as may be reasonable or
23    appropriate to enforce this Act and rules and regulations
24    hereunder.
25    (d) The Board may seek and shall receive the cooperation of
26the Department of State Police in conducting background

 

 

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1investigations of applicants and in fulfilling its
2responsibilities under this Section. Costs incurred by the
3Department of State Police as a result of such cooperation
4shall be paid by the Board in conformance with the requirements
5of Section 2605-400 of the Department of State Police Law (20
6ILCS 2605/2605-400).
7    (e) The Board must authorize to each investigator and to
8any other employee of the Board exercising the powers of a
9peace officer a distinct badge that, on its face, (i) clearly
10states that the badge is authorized by the Board and (ii)
11contains a unique identifying number. No other badge shall be
12authorized by the Board.
13(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
 
14    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
15    Sec. 7. Owners licenses.
16    (a) The Board shall issue owners licenses to persons, firms
17or corporations which apply for such licenses upon payment to
18the Board of the non-refundable license fee set by the Board,
19upon payment of a $25,000 license fee for the first year of
20operation and a $5,000 license fee for each succeeding year and
21upon a determination by the Board that the applicant is
22eligible for an owners license pursuant to this Act and the
23rules of the Board. From the effective date of this amendatory
24Act of the 95th General Assembly until (i) 3 years after the
25effective date of this amendatory Act of the 95th General

 

 

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1Assembly, (ii) the date any organization licensee begins to
2operate a slot machine or video game of chance under the
3Illinois Horse Racing Act of 1975 or this Act, (iii) the date
4that payments begin under subsection (c-5) of Section 13 of the
5Act, or (iv) the wagering tax imposed under Section 13 of this
6Act is increased by law to reflect a tax rate that is at least
7as stringent or more stringent than the tax rate contained in
8subsection (a-3) of Section 13, whichever occurs first, as a
9condition of licensure and as an alternative source of payment
10for those funds payable under subsection (c-5) of Section 13 of
11the Riverboat Gambling Act, any owners licensee that holds or
12receives its owners license on or after the effective date of
13this amendatory Act of the 94th General Assembly, other than an
14owners licensee operating a riverboat with adjusted gross
15receipts in calendar year 2004 of less than $200,000,000, must
16pay into the Horse Racing Equity Trust Fund, in addition to any
17other payments required under this Act, an amount equal to 3%
18of the adjusted gross receipts received by the owners licensee.
19The payments required under this Section shall be made by the
20owners licensee to the State Treasurer no later than 3:00
21o'clock p.m. of the day after the day when the adjusted gross
22receipts were received by the owners licensee. A person, firm
23or corporation is ineligible to receive an owners license if:
24        (1) the person has been convicted of a felony under the
25    laws of this State, any other state, or the United States;
26        (2) the person has been convicted of any violation of

 

 

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1    Article 28 of the Criminal Code of 1961 or the Criminal
2    Code of 2012, or substantially similar laws of any other
3    jurisdiction;
4        (3) the person has submitted an application for a
5    license under this Act which contains false information;
6        (4) the person is a member of the Board;
7        (5) a person defined in (1), (2), (3) or (4) is an
8    officer, director or managerial employee of the firm or
9    corporation;
10        (6) the firm or corporation employs a person defined in
11    (1), (2), (3) or (4) who participates in the management or
12    operation of gambling operations authorized under this
13    Act;
14        (7) (blank); or
15        (8) a license of the person, firm or corporation issued
16    under this Act, or a license to own or operate gambling
17    facilities in any other jurisdiction, has been revoked.
18    The Board is expressly prohibited from making changes to
19the requirement that licensees make payment into the Horse
20Racing Equity Trust Fund without the express authority of the
21Illinois General Assembly and making any other rule to
22implement or interpret this amendatory Act of the 95th General
23Assembly. For the purposes of this paragraph, "rules" is given
24the meaning given to that term in Section 1-70 of the Illinois
25Administrative Procedure Act.
26    (b) In determining whether to grant an owners license to an

 

 

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1applicant, the Board shall consider:
2        (1) the character, reputation, experience and
3    financial integrity of the applicants and of any other or
4    separate person that either:
5            (A) controls, directly or indirectly, such
6        applicant, or
7            (B) is controlled, directly or indirectly, by such
8        applicant or by a person which controls, directly or
9        indirectly, such applicant;
10        (2) the facilities or proposed facilities for the
11    conduct of riverboat gambling;
12        (3) the highest prospective total revenue to be derived
13    by the State from the conduct of riverboat gambling;
14        (4) the extent to which the ownership of the applicant
15    reflects the diversity of the State by including minority
16    persons, women, and persons with a disability and the good
17    faith affirmative action plan of each applicant to recruit,
18    train and upgrade minority persons, women, and persons with
19    a disability in all employment classifications;
20        (4.5) the extent to which the ownership of the
21    applicant includes veterans of service in the armed forces
22    of the United States, and the good faith affirmative action
23    plan of each applicant to recruit, train, and upgrade
24    veterans of service in the armed forces of the United
25    States in all employment classifications;
26        (5) the financial ability of the applicant to purchase

 

 

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1    and maintain adequate liability and casualty insurance;
2        (6) whether the applicant has adequate capitalization
3    to provide and maintain, for the duration of a license, a
4    riverboat;
5        (7) the extent to which the applicant exceeds or meets
6    other standards for the issuance of an owners license which
7    the Board may adopt by rule; and
8        (8) The amount of the applicant's license bid.
9    (c) Each owners license shall specify the place where
10riverboats shall operate and dock.
11    (d) Each applicant shall submit with his application, on
12forms provided by the Board, 2 sets of his fingerprints.
13    (e) The Board may issue up to 10 licenses authorizing the
14holders of such licenses to own riverboats. In the application
15for an owners license, the applicant shall state the dock at
16which the riverboat is based and the water on which the
17riverboat will be located. The Board shall issue 5 licenses to
18become effective not earlier than January 1, 1991. Three of
19such licenses shall authorize riverboat gambling on the
20Mississippi River, or, with approval by the municipality in
21which the riverboat was docked on August 7, 2003 and with Board
22approval, be authorized to relocate to a new location, in a
23municipality that (1) borders on the Mississippi River or is
24within 5 miles of the city limits of a municipality that
25borders on the Mississippi River and (2), on August 7, 2003,
26had a riverboat conducting riverboat gambling operations

 

 

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1pursuant to a license issued under this Act; one of which shall
2authorize riverboat gambling from a home dock in the city of
3East St. Louis. One other license shall authorize riverboat
4gambling on the Illinois River south of Marshall County. The
5Board shall issue one additional license to become effective
6not earlier than March 1, 1992, which shall authorize riverboat
7gambling on the Des Plaines River in Will County. The Board may
8issue 4 additional licenses to become effective not earlier
9than March 1, 1992. In determining the water upon which
10riverboats will operate, the Board shall consider the economic
11benefit which riverboat gambling confers on the State, and
12shall seek to assure that all regions of the State share in the
13economic benefits of riverboat gambling.
14    In granting all licenses, the Board may give favorable
15consideration to economically depressed areas of the State, to
16applicants presenting plans which provide for significant
17economic development over a large geographic area, and to
18applicants who currently operate non-gambling riverboats in
19Illinois. The Board shall review all applications for owners
20licenses, and shall inform each applicant of the Board's
21decision. The Board may grant an owners license to an applicant
22that has not submitted the highest license bid, but if it does
23not select the highest bidder, the Board shall issue a written
24decision explaining why another applicant was selected and
25identifying the factors set forth in this Section that favored
26the winning bidder.

 

 

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1    In addition to any other revocation powers granted to the
2Board under this Act, the Board may revoke the owners license
3of a licensee which fails to begin conducting gambling within
415 months of receipt of the Board's approval of the application
5if the Board determines that license revocation is in the best
6interests of the State.
7    (f) The first 10 owners licenses issued under this Act
8shall permit the holder to own up to 2 riverboats and equipment
9thereon for a period of 3 years after the effective date of the
10license. Holders of the first 10 owners licenses must pay the
11annual license fee for each of the 3 years during which they
12are authorized to own riverboats.
13    (g) Upon the termination, expiration, or revocation of each
14of the first 10 licenses, which shall be issued for a 3 year
15period, all licenses are renewable annually upon payment of the
16fee and a determination by the Board that the licensee
17continues to meet all of the requirements of this Act and the
18Board's rules. However, for licenses renewed on or after May 1,
191998, renewal shall be for a period of 4 years, unless the
20Board sets a shorter period.
21    (h) An owners license shall entitle the licensee to own up
22to 2 riverboats. A licensee shall limit the number of gambling
23participants to 1,200 for any such owners license. A licensee
24may operate both of its riverboats concurrently, provided that
25the total number of gambling participants on both riverboats
26does not exceed 1,200. Riverboats licensed to operate on the

 

 

SB3387 Enrolled- 66 -LRB100 19071 SMS 34327 b

1Mississippi River and the Illinois River south of Marshall
2County shall have an authorized capacity of at least 500
3persons. Any other riverboat licensed under this Act shall have
4an authorized capacity of at least 400 persons.
5    (i) A licensed owner is authorized to apply to the Board
6for and, if approved therefor, to receive all licenses from the
7Board necessary for the operation of a riverboat, including a
8liquor license, a license to prepare and serve food for human
9consumption, and other necessary licenses. All use, occupation
10and excise taxes which apply to the sale of food and beverages
11in this State and all taxes imposed on the sale or use of
12tangible personal property apply to such sales aboard the
13riverboat.
14    (j) The Board may issue or re-issue a license authorizing a
15riverboat to dock in a municipality or approve a relocation
16under Section 11.2 only if, prior to the issuance or
17re-issuance of the license or approval, the governing body of
18the municipality in which the riverboat will dock has by a
19majority vote approved the docking of riverboats in the
20municipality. The Board may issue or re-issue a license
21authorizing a riverboat to dock in areas of a county outside
22any municipality or approve a relocation under Section 11.2
23only if, prior to the issuance or re-issuance of the license or
24approval, the governing body of the county has by a majority
25vote approved of the docking of riverboats within such areas.
26(Source: P.A. 100-391, eff. 8-25-17.)
 

 

 

SB3387 Enrolled- 67 -LRB100 19071 SMS 34327 b

1    (230 ILCS 10/7.6)
2    Sec. 7.6. Business enterprise program.
3    (a) For the purposes of this Section, the terms "minority",
4"minority-owned business", "woman", "women-owned business",
5"person with a disability", and "business owned by a person
6with a disability" have the meanings ascribed to them in the
7Business Enterprise for Minorities, Women, and Persons with
8Disabilities Act.
9    (b) The Board shall, by rule, establish goals for the award
10of contracts by each owners licensee to businesses owned by
11minorities, women, and persons with disabilities, expressed as
12percentages of an owners licensee's total dollar amount of
13contracts awarded during each calendar year. Each owners
14licensee must make every effort to meet the goals established
15by the Board pursuant to this Section. When setting the goals
16for the award of contracts, the Board shall not include
17contracts where: (1) any purchasing mandates would be dependent
18upon the availability of minority-owned businesses,
19women-owned businesses, and businesses owned by persons with
20disabilities ready, willing, and able with capacity to provide
21quality goods and services to a gaming operation at reasonable
22prices; (2) there are no or a limited number of licensed
23suppliers as defined by this Act for the goods or services
24provided to the licensee; (3) the licensee or its parent
25company owns a company that provides the goods or services; or

 

 

SB3387 Enrolled- 68 -LRB100 19071 SMS 34327 b

1(4) the goods or services are provided to the licensee by a
2publicly traded company.
3    (c) Each owners licensee shall file with the Board an
4annual report of its utilization of minority-owned businesses,
5women-owned businesses, and businesses owned by persons with
6disabilities during the preceding calendar year. The reports
7shall include a self-evaluation of the efforts of the owners
8licensee to meet its goals under this Section.
9    (c-5) The Board shall, by rule, establish goals for the
10award of contracts by each owners licensee to businesses owned
11by veterans of service in the armed forces of the United
12States, expressed as percentages of an owners licensee's total
13dollar amount of contracts awarded during each calendar year.
14When setting the goals for the award of contracts, the Board
15shall not include contracts where: (1) any purchasing mandates
16would be dependent upon the availability of veteran-owned
17businesses ready, willing, and able with capacity to provide
18quality goods and services to a gaming operation at reasonable
19prices; (2) there are no or a limited number of licensed
20suppliers as defined in this Act for the goods or services
21provided to the licensee; (3) the licensee or its parent
22company owns a company that provides the goods or services; or
23(4) the goods or services are provided to the licensee by a
24publicly traded company.
25    Each owners licensee shall file with the Board an annual
26report of its utilization of veteran-owned businesses during

 

 

SB3387 Enrolled- 69 -LRB100 19071 SMS 34327 b

1the preceding calendar year. The reports shall include a
2self-evaluation of the efforts of the owners licensee to meet
3its goals under this Section.
4    (d) The owners licensee shall have the right to request a
5waiver from the requirements of this Section. The Board shall
6grant the waiver where the owners licensee demonstrates that
7there has been made a good faith effort to comply with the
8goals for participation by minority-owned businesses,
9women-owned businesses, and businesses owned by persons with
10disabilities, and veteran-owned businesses.
11    (e) If the Board determines that its goals and policies are
12not being met by any owners licensee, then the Board may:
13        (1) adopt remedies for such violations; and
14        (2) recommend that the owners licensee provide
15    additional opportunities for participation by
16    minority-owned businesses, women-owned businesses, and
17    businesses owned by persons with disabilities, and
18    veteran-owned businesses; such recommendations may
19    include, but shall not be limited to:
20            (A) assurances of stronger and better focused
21        solicitation efforts to obtain more minority-owned
22        businesses, women-owned businesses, and businesses
23        owned by persons with disabilities, and veteran-owned
24        businesses as potential sources of supply;
25            (B) division of job or project requirements, when
26        economically feasible, into tasks or quantities to

 

 

SB3387 Enrolled- 70 -LRB100 19071 SMS 34327 b

1        permit participation of minority-owned businesses,
2        women-owned businesses, and businesses owned by
3        persons with disabilities, and veteran-owned
4        businesses;
5            (C) elimination of extended experience or
6        capitalization requirements, when programmatically
7        feasible, to permit participation of minority-owned
8        businesses, women-owned businesses, and businesses
9        owned by persons with disabilities, and veteran-owned
10        businesses;
11            (D) identification of specific proposed contracts
12        as particularly attractive or appropriate for
13        participation by minority-owned businesses,
14        women-owned businesses, and businesses owned by
15        persons with disabilities, and veteran-owned
16        businesses, such identification to result from and be
17        coupled with the efforts of items (A) through (C); and
18            (E) implementation of regulations established for
19        the use of the sheltered market process.
20    (f) The Board shall file, no later than March 1 of each
21year, an annual report that shall detail the level of
22achievement toward the goals specified in this Section over the
233 most recent fiscal years. The annual report shall include,
24but need not be limited to:
25        (1) a summary detailing expenditures subject to the
26    goals, the actual goals specified, and the goals attained

 

 

SB3387 Enrolled- 71 -LRB100 19071 SMS 34327 b

1    by each owners licensee; and
2        (2) an analysis of the level of overall goal
3    achievement concerning purchases from minority-owned
4    businesses, women-owned businesses, and businesses owned
5    by persons with disabilities, and veteran-owned
6    businesses.
7(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17.)
 
8    Section 15. The Video Gaming Act is amended by changing
9Sections 45 and 80 as follows:
 
10    (230 ILCS 40/45)
11    Sec. 45. Issuance of license.
12    (a) The burden is upon each applicant to demonstrate his
13suitability for licensure. Each video gaming terminal
14manufacturer, distributor, supplier, operator, handler,
15licensed establishment, licensed truck stop establishment,
16licensed fraternal establishment, and licensed veterans
17establishment shall be licensed by the Board. The Board may
18issue or deny a license under this Act to any person pursuant
19to the same criteria set forth in Section 9 of the Riverboat
20Gambling Act.
21    (a-5) The Board shall not grant a license to a person who
22has facilitated, enabled, or participated in the use of
23coin-operated devices for gambling purposes or who is under the
24significant influence or control of such a person. For the

 

 

SB3387 Enrolled- 72 -LRB100 19071 SMS 34327 b

1purposes of this Act, "facilitated, enabled, or participated in
2the use of coin-operated amusement devices for gambling
3purposes" means that the person has been convicted of any
4violation of Article 28 of the Criminal Code of 1961 or the
5Criminal Code of 2012. If there is pending legal action against
6a person for any such violation, then the Board shall delay the
7licensure of that person until the legal action is resolved.
8    (b) Each person seeking and possessing a license as a video
9gaming terminal manufacturer, distributor, supplier, operator,
10handler, licensed establishment, licensed truck stop
11establishment, licensed fraternal establishment, or licensed
12veterans establishment shall submit to a background
13investigation conducted by the Board with the assistance of the
14State Police or other law enforcement. To the extent that the
15corporate structure of the applicant allows, the background
16investigation shall include any or all of the following as the
17Board deems appropriate or as provided by rule for each
18category of licensure: (i) each beneficiary of a trust, (ii)
19each partner of a partnership, (iii) each member of a limited
20liability company, (iv) each director and officer of a publicly
21or non-publicly held corporation, (v) each stockholder of a
22non-publicly held corporation, (vi) each stockholder of 5% or
23more of a publicly held corporation, or (vii) each stockholder
24of 5% or more in a parent or subsidiary corporation.
25    (c) Each person seeking and possessing a license as a video
26gaming terminal manufacturer, distributor, supplier, operator,

 

 

SB3387 Enrolled- 73 -LRB100 19071 SMS 34327 b

1handler, licensed establishment, licensed truck stop
2establishment, licensed fraternal establishment, or licensed
3veterans establishment shall disclose the identity of every
4person, association, trust, corporation, or limited liability
5company having a greater than 1% direct or indirect pecuniary
6interest in the video gaming terminal operation for which the
7license is sought. If the disclosed entity is a trust, the
8application shall disclose the names and addresses of the
9beneficiaries; if a corporation, the names and addresses of all
10stockholders and directors; if a limited liability company, the
11names and addresses of all members; or if a partnership, the
12names and addresses of all partners, both general and limited.
13    (d) No person may be licensed as a video gaming terminal
14manufacturer, distributor, supplier, operator, handler,
15licensed establishment, licensed truck stop establishment,
16licensed fraternal establishment, or licensed veterans
17establishment if that person has been found by the Board to:
18        (1) have a background, including a criminal record,
19    reputation, habits, social or business associations, or
20    prior activities that pose a threat to the public interests
21    of the State or to the security and integrity of video
22    gaming;
23        (2) create or enhance the dangers of unsuitable,
24    unfair, or illegal practices, methods, and activities in
25    the conduct of video gaming; or
26        (3) present questionable business practices and

 

 

SB3387 Enrolled- 74 -LRB100 19071 SMS 34327 b

1    financial arrangements incidental to the conduct of video
2    gaming activities.
3    (e) Any applicant for any license under this Act has the
4burden of proving his or her qualifications to the satisfaction
5of the Board. The Board may adopt rules to establish additional
6qualifications and requirements to preserve the integrity and
7security of video gaming in this State.
8    (f) A non-refundable application fee shall be paid at the
9time an application for a license is filed with the Board in
10the following amounts:
11        (1) Manufacturer..........................$5,000
12        (2) Distributor...........................$5,000
13        (3) Terminal operator.....................$5,000
14        (4) Supplier..............................$2,500
15        (5) Technician..............................$100
16        (6) Terminal Handler.....................$100 $50
17        (7) Licensed establishment, licensed truck stop
18    establishment, licensed fraternal establishment,
19    or licensed veterans establishment...................$100
20    (g) The Board shall establish an annual fee for each
21license not to exceed the following:
22        (1) Manufacturer.........................$10,000
23        (2) Distributor..........................$10,000
24        (3) Terminal operator.....................$5,000
25        (4) Supplier..............................$2,000
26        (5) Technician..............................$100

 

 

SB3387 Enrolled- 75 -LRB100 19071 SMS 34327 b

1        (6) Licensed establishment, licensed truck stop
2    establishment, licensed fraternal establishment,
3    or licensed veterans establishment..............$100
4        (7) Video gaming terminal...................$100
5        (8) Terminal Handler.........................$100 $50
6    (h) A terminal operator and a licensed establishment,
7licensed truck stop establishment, licensed fraternal
8establishment, or licensed veterans establishment shall
9equally split the fees specified in item (7) of subsection (g).
10(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1198-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
12    (230 ILCS 40/80)
13    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
14The provisions of the Illinois Riverboat Gambling Act, and all
15rules promulgated thereunder, shall apply to the Video Gaming
16Act, except where there is a conflict between the 2 Acts. All
17current supplier licensees under the Riverboat Gambling Act
18shall be entitled to licensure under the Video Gaming Act as
19manufacturers, distributors, or suppliers without additional
20Board investigation or approval, except by vote of the Board;
21however, they are required to pay application and annual fees
22under this Act. All provisions of the Uniform Penalty and
23Interest Act shall apply, as far as practicable, to the subject
24matter of this Act to the same extent as if such provisions
25were included herein.

 

 

SB3387 Enrolled- 76 -LRB100 19071 SMS 34327 b

1(Source: P.A. 96-37, eff. 7-13-09.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.